19.3.2003: Meldung: Ceco Environmental Reports Results
CECO reported net income for the fourth quarter was $218,000 or $0.02 per share as compared to net income of $4,000 or $0.00 per share for the same period in 2001. Fourth quarter 2002, EBITDA (earnings before interest, taxes, depreciation and amortization) was $1,726,000 compared to $1,917,000 during the same period in 2001.
Fourth quarter 2002 revenue was $21.8 million compared to $23.8 million during the same quarter in 2001. The decrease was mainly due to the weakness in the industrial sectors of the U.S. economy, and the disposition of two non-strategic operating divisions, (Air Purator Corporation in the fourth quarter of 2001 and Busch Martec in the second quarter of 2002).
Chairman and CEO, Phillip DeZwirek stated, "2002 was unquestionably a challenging year for everyone, including CECO. In response, we made the necessary spending cuts and organizational changes, while continuing to focus on the unique needs of our customers. We have increased our sales efforts in niche markets where we can add value and capitalize on new revenue opportunities. CECO"s platform for growth is firmly in place whether it"s through internal expansion or acquisition. We look forward to a solid year ahead."
CECO Environmental Corp., President, Rick Blum stated, "CECO"s reduction in operating expenses, which resulted in the lower level of spending during the fourth quarter, reflects some of the nearly $2,000,000 in annualized savings anticipated from cost reduction programs implemented in the second and third quarters of 2002."
Blum added, "We have reduced our cost structure so that our breakeven point in revenue has been lowered by over $16 million since FY2001 while continuing to reduce our bank debt. We have experienced a pickup in customer inquiries and, as a result, our quoting efforts have increased. While it"s difficult to predict when the industrial sectors will turnaround, we believe that we have taken the necessary steps to generate stronger earnings in 2003".
Operating profit for the fourth quarter was $1,253,000 or $0.13 per share, compared to $1,281,000 or $0.16 per share, (on fewer shares outstanding), during the comparable period in 2001.
Sales for FY2002 were $78.9 million compared with $91.0 million in FY2001.
Net loss during FY2002 was ($123,000) or ($0.01) per share compared to ($264,000) or ($0.03) per share for FY2001. FY2002 EBITDA was $3,990,000 compared to $5,333,000 for FY2001.
The Company reduced its outstanding senior debt by $3.4 million to $14.3 million at December 31, 2002. December 31, 2002, backlog was $14.6 million, compared to $18.6 million at December 31, 2001.
FY2001 Operating Profit included certain non-recurring gains totaling $370,000. The Company"s January 1, 2002 adoption of Statement of Financial Accounting Standard No. 142, "Goodwill and Other Intangible Assets" resulted in a favorable impact to Operating Profit of $119,000 during the fourth quarter and $476,000 in fiscal year 2002.
ABOUT CECO ENVIRONMENTAL:
CECO Environmental Corp. is North America"s largest independent air pollution control company. Through its five subsidiaries - Busch Company, CECO Filters, CECO Abatement Systems, kbd/Technic and Kirk & Blum -- CECO provides a wide spectrum of air quality services and products including: industrial air filters, environmental maintenance, monitoring and management services, and air quality improvements systems. CECO is a full- service provider to the steel, military, aluminum, automotive, aerospace, semiconductor, chemical, cement, metalworking, glass, foundry and virtually all-industrial process industries.
For more information on CECO Environmental, please visit the company"s web site at http://www.cecoenviro.com.
Phillip DeZwirek, CECO Environmental Corp.
CECO Environmental Corp.
Condensed Consolidated Statement of Operations
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
31 Dec. 02 31 Dec. 01 31 Dec. 02 31 Dec. 01
Net sales $21,831 $23,835 $78,877 $90,994
Cost of sales 17,205 18,098 62,985 72,462
Gross profit 4,626 5,737 15,892 18,532
Administrative 2,900 3,820 11,902 13,199
amortization 473 636 1,789 2,320
Operating income 1,253 1,281 2,201 3,013
Interest expense &
other income (688) (824) (2,540) (3,146)
Income (loss) before
income taxes 565 457 (339) (133)
Income tax (expense)
benefit (347) (453) 216 (131)
Net income (loss) $218 $4 $(123) $(264)
Operating income $1,253 $1,281 $2,201 $3,013
Amortization 473 636 1,789 2,320
Total EBITDA $1,726 $1,917 $3,990 $5,333
Per Share Data:
Basic $.13 $.16 $.23 $.38
Diluted $.13 $.15 $.23 $.38
Net income (loss)
Basic $.02 $.00 $(.01) $(.03)
Diluted $.02 $.00 $(.01) $(.03)
Basic 9,585.944 7,922.932 9,582.011 7,899.092
Diluted 9,709.790 8,823.334 9,582.011 7,899.092
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are more fully described in CECO"s Annual and Quarterly Reports filed with the Securities and Exchange Commission, include changes in market conditions in the industries in which the Company operates. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated.
Phillip DeZwirek, CECO Environmental Corp.